Shares of Kotak Mahindra Bank slipped 0.7 percent to Rs 1,752.55 in early trade on November 20 after the Maharashtra GST department slapped a penalty of around Rs 35 lakh.
On November 18, the Department of Goods and Service Tax under the Government of Maharashtra levied an amount of Rs 34,99,796 towards Goods and Services Tax (GST) and interest on Kotak Mahindra Bank.
The GST department also added a penalty of Rs 1,64,936 for the alleged excess claim of GST credit and non-payment of GST under reverse charge in certain instances during the assessment period July 2017–March 2018.
As of 9.22am, shares of Kotak Mahindra Bank were trading at Rs 1,758.2 on the NSE, lower by 0.36 percent from the previous session’s close.
The bank said that it believe it has adequate grounds to support its position in the matter and would prefer an appeal against the aforesaid order, under the applicable laws. “The impact of the above order would be limited to the amount of levy payable by the Bank under the aforesaid order,” said Kotak Mahindra Bank, in a filing with the exchanges.
On November 16, the RBI increased risk weight on consumer credit exposure of commercial banks and non-banking financial companies (NBFCs) by 25 percent. The banking regulator was concerned over increased borrowings in the unsecured loans segment. As a result, shares of Kotak Bank have fallen almost a percent since the announcement.
Kotak Bank shares eroded 9.44 percent of investors’ wealth in the past six months, while the benchmark index Nifty 50 has seen a growth of 7.71 percent.